This is one experiment that central bankers in Asia should follow closely: The Monetary Board of the Philippines has pre-empted a possible US Federal Reserve interest rate cut .

The brave reduction of the Bangko Sentral's central bank key interest rate by 50bp cut, adopted during the March 8 regular board meeting, was unexpected. BSP Governor Rafael Buenaventura has been firm in his policy of lowering interest rates, but timing has always been patterned after that of the US monetary policy.

This time, the Bangko Sentral proactively lowered rates without waiting for the results US Federal Reserve committee meeting scheduled for March 20. Newly appointed National...